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Q1 Earnings Highlights: PlayStudios (NASDAQ:MYPS) Vs The Rest Of The Gaming Solutions Stocks


Radek Strnad /
2024/07/11 7:23 am EDT

As the Q1 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the gaming solutions industry, including PlayStudios (NASDAQ:MYPS) and its peers.

Gaming solution companies operate in a dynamic and evolving market, and the digital transformation of the gaming industry presents significant opportunities for innovation and growth, whether it be immersive slot machine terminals or mobile sports betting. However, the gaming solution industry is not without its challenges. Regulatory compliance is a crucial consideration as companies must navigate a complex and often fragmented regulatory landscape across different jurisdictions. Changes in regulations can impact product offerings, operational practices, and market access, requiring companies to maintain flexibility and adaptability in their business strategies. Additionally, the competitive nature of the industry necessitates continuous investment in research and development to stay ahead of competitors and meet evolving consumer demands.

The 8 gaming solutions stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 3.3%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and gaming solutions stocks have held roughly steady amidst all this, with share prices up 3.4% on average since the previous earnings results.

PlayStudios (NASDAQ:MYPS)

Founded by a team of former gaming industry executives, PlayStudios (NASDAQ:MYPS) offers free-to-play digital casino games.

PlayStudios reported revenues of $77.83 million, down 2.9% year on year, exceeding analysts' expectations by 2.5%. Overall, it was a mixed quarter for the company with a decent beat of analysts' daily active users estimates but a miss of analysts' earnings estimates.

Andrew Pascal, Chairman and Chief Executive Officer of PLAYSTUDIOS, commented, “We started the year well with Revenues and Consolidated AEBITDA coming in above consensus expectations. We’ve accomplished this despite persistent industry and economic headwinds that make operating conditions challenging. More importantly, we are making progress on our many strategic initiatives and believe we’ll exit the year as a stronger company.”

PlayStudios Total Revenue

PlayStudios delivered the weakest full-year guidance update of the whole group. The company reported 14.75 million monthly active users, up 12.8% year on year. The stock is down 11.2% since reporting and currently trades at $2.07.

Read our full report on PlayStudios here, it's free.

Best Q1: Rush Street Interactive (NYSE:RSI)

Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE:RSI) is an operator of digital gaming platforms.

Rush Street Interactive reported revenues of $217.4 million, up 33.9% year on year, outperforming analysts' expectations by 9.8%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates and full-year revenue guidance exceeding analysts' expectations.

Rush Street Interactive Total Revenue

Rush Street Interactive pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 38.4% since reporting. It currently trades at $8.86.

Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Inspired (NASDAQ:INSE)

Specializing in digital casino gaming, Inspired (NASDAQ:INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.

Inspired reported revenues of $63.1 million, down 2.8% year on year, falling short of analysts' expectations by 2.8%. It was a weak quarter for the company with a miss of analysts' earnings and revenue estimates.

Inspired had the weakest performance against analyst estimates in the group. As expected, the stock is down 5.9% since the results and currently trades at $8.89.

Read our full analysis of Inspired's results here.

Everi (NYSE:EVRI)

Formed between the 2015 merger of Global Cash Access and Multimedia Games, Everi (NYSE:EVRI) is a producer of games and financial infrastructure for the casino and hospitality industries.

Everi reported revenues of $189.3 million, down 5.5% year on year, in line with analysts' expectations. Looking more broadly, it was a weak quarter for the company with a miss of analysts' earnings estimates.

Everi had the slowest revenue growth among its peers. The stock is up 12% since reporting and currently trades at $9.06.

Read our full, actionable report on Everi here, it's free.

DraftKings (NASDAQ:DKNG)

Getting its start in daily fantasy sports, DraftKings (NASDAQ:DKNG) is a digital sports entertainment and gaming company.

DraftKings reported revenues of $1.17 billion, up 52.7% year on year, surpassing analysts' expectations by 4.6%. Looking more broadly, it was a decent quarter for the company with full-year revenue guidance exceeding analysts' expectations but a miss of analysts' earnings estimates.

DraftKings delivered the fastest revenue growth among its peers. The stock is down 14.7% since reporting and currently trades at $36.7.

Read our full, actionable report on DraftKings here, it's free.

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